Personal Accounts Equals Pension Losses

Personal Accounts Equals Pension Losses

Fidelity International has warned that the introduction of Personal Accounts in 2012 will see at least 300,000 UK employees deprived of their existing pension scheme benefits.  

The research revealed that just under 7 per cent of finance directors would close existing schemes and replace them with personal accounts.  An additional 11 per cent of employers say that they will keep all their existing employees in the company scheme, new joiners will only be offered personal accounts with considerably lower contribution rates.

Our view

We have always suggested that people will literally redirect where they save and invest money rather than save more when the National Pension Personal Accounts arrive.  Sorry, Government we suggest this will only partially work to improve the pensions savings gap.  You should have kept faith with making Stakeholder pensions compulsory rather than a totally brand new pension scheme.

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